Only seven states and the Federal Capital Territory are fully implementing pension reform laws, the National Pension Commission has said.
The contributory pension framework has been adopted across the country.
The Director-General of the National Pension Commission, Mrs Omolola Oloworaran, disclosed this on Thursday in Abuja during the maiden edition of the bi-annual consultative session for heads of service of states yet to adopt or fully implement the Contributory Pension Scheme or the Contributory Defined Benefits Scheme.
She said, “Out of the 36 states with pension reform laws on their books, only seven states, together with the Federal Capital Territory, are fully implementing these laws.”
The session was organised to encourage dialogue with affected state heads of service and to explore practical ways in which PenCom could provide technical support for the successful adoption and implementation of pension reforms at the sub-national level.
According to Oloworaran, 30 states and the FCT had enacted laws on the contributory pension scheme or the contributory defined benefits scheme, while six states still had pension reform bills awaiting passage in their state assemblies.
She noted that 23 states had pension laws that were either inactive or only partially implemented, leaving many civil servants uncertain about their retirement future.
“That leaves 23 states whose laws are written, inactive, or only partially being implemented. Twenty-three sets of public servants or civil servants whose retirement future hangs in the balance, not because there is no law, but because the law has not been activated,” she said.
The PenCom boss described pension reform as a constitutional and fiscal obligation rather than a policy option, citing Section 210 of the 1999 Constitution, which guarantees pension rights for civil servants.
She said the old pension structure had failed because it created uncertainty and unsustainable liabilities, adding that the contributory pension scheme was introduced to promote accountability, sustainability, and transparency in pension administration.
Oloworaran stressed that the main challenge facing many states was no longer the passage of pension laws but the discipline required for implementation, including regular remittance of pension contributions and adequate funding of accrued pension rights.
“Across our states, the challenge is no longer the enactment of laws. The challenge is the discipline of execution. It is the regular and timely remittance of contributions. It is the adequate and consistent funding of accrued pension rights,” she stated.
She urged heads of service to see pension reform as part of their governance legacy, noting that the success or failure of implementation in states would largely depend on their commitment.
The PenCom DG added that the commission’s goal under her leadership was to achieve “zero pension liabilities” and retirement dignity for Nigerian workers.
She also disclosed that President Bola Tinubu approved and released N758bn in 2025 to clear outstanding pension liabilities at the federal level, adding that there were currently no outstanding pension liabilities at the federal level.
According to her, PenCom had also launched “Pension Revolution 2.0,” a reform programme focused on retiree welfare, expanded pension coverage, improved investment performance, technology-driven service delivery, and national development financing.
She said the Federal Government’s recent approval of exit benefits for treasury-funded civil servants under the contributory pension scheme had addressed concerns that previously made the scheme unattractive to workers.
Speaking at the event, the Head of the Civil Service of the Federation, Mrs Didi Esther Walson-Jack, said the consultative session was timely and necessary.
“The decision to bring together heads of service of states that are not yet fully implementing the contributory pension scheme is timely, strategic, and indeed very necessary,” she said.
Walson-Jack described pension reform as a matter of dignity, justice, confidence, and trust in public institutions, stressing that workers deserved assurance of stability after retirement.
She said the contributory pension scheme had introduced transparency, accountability, and sustainability into pension administration, but added that its benefits could only be fully realised through deeper implementation across all levels of government.
The Head of Service urged participating states to use the engagement to foster honest dialogue, peer learning, and practical problem-solving to strengthen confidence in government and protect workers.
She further called for stronger collaboration among PenCom, state governments, ministries of finance, pension bureaus, labour unions, and pension fund administrators to drive reforms nationwide.
The Nigerian pension fund industry started 2026 on a high note, with total pension fund assets surging to a new milestone of N28.04tn as of January 31, 2026, indicating a 22.64 per cent appreciation in pension assets from N22.86tn in January 2025.
According to the unaudited report on the pension funds industry portfolio, the industry recorded a significant monthly growth of N580.22bn, rising from a previous net asset value of N27.46tn at the end of the prior period.
On an annual basis, the increase represents an addition of N5.17tn within one year, highlighting continued expansion in the pension industry driven by contributions and investment performance.
This growth coincided with a steady expansion in the contributor base, with Registered Savings Account membership reaching 11,084,127 as of January 2026.
